Delta Economics and Sustainability

Environmental change constitutes a risk to the sustainability of economic activities, within deltas and the wider regions and economies within which they sit. Slow acting environmental change and shocks from extreme events can affect economic activities. Using multiregional input-output tables, extended to include environmental dimensions and combined with Computable General Equilibrium models, flows of economic activities and ecosystem services across supply chains are assessed. Results show that climate change has the potential to significantly reduce GDP per capita between 9 and 19.5% in the deltas considered through impacts on infrastructures, agriculture and fisheries. Identifying the cause and nature of economic change using such analysis supports development and implementation of policy options to reduce economic vulnerability and promote sustainability.